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Australian Cuddle
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INTERVIEW EXPERT VIEW GLOBAL INDIAN Turnaround at Stanlow reflects Financial reforms in India: India is at a cusp of a Essar Oil’s global vision A new era revolution Exclusive with S. Thangapandian by Rashesh Shah Dr B.R. Shetty Chief Executive Officer Chairman & CEO Chairman Essar Oil UK Edelweiss Group UAE Exchange
Koala cuddle
ur cover in this issue featuring Adani Group Indian students – 60,000 Indians have gone to study Chairman Gautam Adani cuddling a koala bear in Australia in 2017 (till the end of August). Despite the is an ode to India’s distinct globalisation and growing trade, strategic and people-to-people ties, Odevelopment model. While it takes inspiration from the however, serious challenges exist. India’s quest for cover story on Adani’s $16.5-billion Carmichael coal mine- resource and energy partnerships worldwide – primarily railroad-and-port project in Queensland, it also seeks to for raw materials such as coal and strategic minerals like encapsulate the essence of Indo-Australian relations.hh uranium – means that the relationship with Australia will India and Australia have now moved beyond the traditional remain hostage to lobbies such as the ones opposing three Cs that characterised the relationship in the past – the Adani Group’s Carmichael project and those that are cricket, curry and Commonwealth. Although these three against the spread of nuclear energy. remain important markers of bilateral ties between the two nations, the clinch has grown tighter and now includes in Australian celebrities, such as cricketers Ian and Greg its remit a much wider range of issues – trade, tourism, Chappel, joining the chorus against India’s largest education, geo-strategy, energy security and a lot more. outbound FDI deal – which is key to India’s energy security – skews the pitch a little more than expected. Currently, Indian investments in Australia are touching India has consistently honoured PM Modi’s commitment the $12-billion mark, with an increasing number of to greener growth economics at home and abroad and Indian companies looking at Australia as an investment even provided global leadership in the area with the destination – a sign, perhaps, of the emerging Asian International Solar Alliance (ISA). A fact that has been century. Much like the bond of friendship ignored within the protest narrative and support symbolised by the proverbial around the Carmichael project. I am cuddle, India has in its dealings INDIA’S COMMITMENT hopeful, however, that eventually both practiced building mutually sympathetic TO GREENER – India’s commitment to greener growth relationships as opposed to the slow GROWTH AND THE and the potential benefits to both Australia strangle practiced by some of its rivals and India – will trump the naysayers in in their outbound FDI strategies. The POTENTIAL the end. cover theme thus seeks to capture this BENEFITS TO BOTH embracing quality of India’s foreign AUSTRALIA AND The India-Australia bilateral relationship investment strategy based on values INDIA – WILL TRUMP may teeter on the brink at times – as the of cooperation, mutual respect and THE NAYSAYERS potential failure of the Adani investment to collaboration. materialise may portend. I am confident, however, that this relationship has now But why Australia? And why now? attained a level of depth, breadth and maturity. India is Australia’s ninth-largest source of inbound tourists, with arrivals touching 260,000 in 2016, an increase of 11.3 On a broader canvas, we have placed Adani’s Carmichael per cent over the previous year. The forecast is for almost project in the context of India’s worldwide hunt for 500,000 Indian tourists to visit Australia in seven years. resources. Indian companies are scouring the farthest And here’s some trivia that I’m sure can liven up many corners of the earth for raw materials and energy sources an evening: Punjabi is the fastest-growing language in to feed its hungry factories back home. In that sense, India Australia and Hinduism the fastest-growing religion. is following in the trajectory of Europe, the US and, most Australian Prime Minister Malcolm Turnbull’s visit to India recently, China. But there is one key difference in India’s last April delivered a range of outcomes in the knowledge, approach – and our cover theme of a “koala cuddle” tells trade and strategic partnership spheres. Most important, that story quite eloquently. he reassured India – after flip-flops on the issue by earlier Australian regimes – about uranium supplies that are key to India’s economic, energy and strategic concerns. Manoj Ladwa Also, India is Australia’s 10th-largest trading partner and Publisher & CEO, India Inc. that country is the second-most popular destination for @manojladwa www.indiaincorporated.com October 2017 3 CONTENTS
The latest edition of ‘India Global Business’ tracks India’s quest for natural resources around the world and the various success stories. The Sector Focus this time is on the Banking & Finance industry and the Country Focus is on Australia. UK/EUROPE PROFILE 13 Adani weathers storm over Queensland mining project 19 Indian renewables agency strikes Bond with UK
21 Jaguar Land Rover goes all electric
THE AMERICAS
25 Can the Indian IT sector overcome the H-1B hurdles? by Gaurav Khanna, Assistant Professor of Economics at the School of Global Policy and Strategy at the University of California
FEATURE REGION
COVER FEATURE 08
Indian companies scour the world for resources 30 India taps Central Asia for energy security by India Inc. staff
Interview EMERGING MARKETS 16 Turnaround at Stanlow reflects 38 Essar Oil’s global vision New Territories, New Gateways
Exclusive with S. Thangapandian Chief Executive Officer, Essar Oil, UK
4 October 2017 INDIA GLOBAL BUSINESS SECTOR FOCUS/Finance
Face to Face 42
TEAM Chief Executive Banking the unbanked is India’s big Manoj Ladwa success story Exclusive with Arundhati Bhattacharya, [email protected] first woman to chair the State Bank of India Editor 45 Indian financial services companies find green Aditi Khanna pastures abroad [email protected]
50 Financial reforms in India: Commercial Director A new era Erik van Kaathoven by Rashesh Shah, Chairman & CEO, [email protected] Edelweiss Group Operations Director COUNTRY FOCUS/Australia Sanjay Kara [email protected] 54 Colonial Cousins by India Inc. staff VP Operations 58 Australia woos Indian companies to invest Rajvi Singhi Down Under [email protected] GLOBAL INDIAN Special Projects Director 62 India is at a cusp of a revolution Nomita Shah Dr B.R. Shetty, Founder and Non- Executive Chairman of the Abu Dhabi [email protected] based NMC Healthcare and Chairman of UAE Exchange Events Manager Dina Ladwa SPECIAL REPORT [email protected] 70 www.indiaincorporated.com © India Inc. Limited, all rights reserved. Reproduction in whole or in part without our written permission is prohibited. Views Punjab makes a play to attract Global Indians expressed by our contributors are their own and do not necessarily represent the views, policies of India Inc. While every effort is made to 72 Indian universities fall behind in global achieve total accuracy India Inc. cannot be held rankings responsible for any errors 74 Illuminating India’s scientific contributions or omissions. NOT FOR SALE 76 Companies must make succession planning an PUBLISHED IN LONDON ongoing processs by Boris Janjalia, Corporate Governance Officer, ECA www.indiaincorporated.com October 2017 5 A A MA B AUSTRALIAN CUDDLE
he Adani Group’s $16.5-billion So, far from being the villain that the its appetite for growth. One crucial Carmichael coal project – Australian activists are painting him aspect that differentiates India’s India’s largest outbound FDI as, Adani Group Chairman Gautam quest from similar earlier efforts by Tdeal – is the target of a concerted Adani may actually be the victim of an Europe, the US and China is in the public and media campaign organised and extremely well-funded approach of its companies – rather by a small group of Australian campaign to stop him from developing than entering countries as foreign environmental activists. Their beef: the Carmichael mine, which will exploiters of natural resources, India, the project will irreparably damage benefit the Australian economy and in keeping with its age-old ethos, has the Great Barrier Reef and reduce contribute significantly to India’s chosen a softer option, of going in as water availability from the Artesian energy security. partners to national governments and Basin. Our report, however, indicates local communities. that the stringent Environmental The Adani saga, though, is only the Impact Survey conducted before the most dramatic of India’s attempts to Read about this fascinating hunt in Queensland government cleared secure energy and mineral resources the following pages. the project considered all these across the world – from Russia to objections. Indonesia to Africa to the US – to feed
www.indiaincorporated.com October 2017 7 COVER FEATURE Indian companies scour the world for resources by India Inc. Staff
Copyright© 2012 Adani Group
ere’s a trivia question: Hunger for resources Which Indian company has a presence, in one form or The Aditya Birla Group, the Tatas, Hanother, in Audi, BMW, Porsche, Reliance Industries, the Adanis, the Mercedes Benz, Ford, Ferrari, Jaguar Essar Group, the Jindals, ONGC Resource-poor but and Hyundai cars? and several other Indian companies have invested billions of dollars in demand-rich Indian Don’t let the presence of Jaguar on acquiring companies in the metals, companies are that list fool you. The answer is not minerals and mining sector over the prospecting and mining Tata. It is that other name that is last decade. often taken in the same breath as the natural resources Tatas in India – Birla… or, to be more And despite the recent slowdown such as coal, oil & gas precise, the Aditya Birla group-owned in the investment cycle, India Inc’s aluminium company Novelis. hunger for cheap raw materials, and other minerals at especially minerals and metals, is locations as far apart Billionaire Chairman of the AV Birla fuelling a growing demand for mineral and mining assets in locations as far as Indonesia, Africa, Group, Kumar Mangalam Birla, acquired this company, which was apart as Indonesia, Africa, Australia Australia and the US spun off from Alcan, and sold in 2006 and even the US. to feed their factories for almost $6 billion. It was then awash in red ink and bleeding money That is because India either lacks back home. every quarter. It took billions of dollars sufficient reserves of the minerals of Birla’s money and the now globally required to feed their operations or acknowledged frugal management because of the problems associated skills of his Indian managers to nurse with acquiring virgin or running mines. this company back to health. “Developing mining assets in
8 October 2017 INDIA GLOBAL BUSINESS COVER FEATURE
THE GREAT INDIAN RESOURCE HUNT Indian companies are spreading out across the globe in search of oil, gas, coal and other minerals to feed their factories back home.
THE 5 STANS OF CENTRAL ASIA RUSSIA
VIETNAM
INDONESIA UNITED STATES IRAN
AFRICA AUSTRALIA
India is facing many roadblocks,” a crude oil production. The daily peak is by no means OVL’s first or even senior research analyst at Mumbai- production from the field is around largest overseas foray. based Angel Broking told reporters 442,000 barrels of oil per day. With 15 recently. “Companies such as Adani per cent shareholding, OVL’s share Topping the list of acquisitions Enterprises, GVK Power and Sesa of daily oil production would be about of overseas oil reserves is its Goa have ventured outside to beat 66,000 bpd,” an official statement had purchase of a 16 per cent stake in resistance to land acquisition and said at the time of the acquisition. Mozambique’s offshore Rovuma Area delayed government approvals in I gas field for $4.13 billion in 2013. The India.” field holds about 75 trillion cubic feet INDIA’S LARGEST of gas reserves. ONGC shows the way PRIVATE SECTOR Then, in 2001, OVL had bought a 20 The most reported foreign acquisition COMPANY, RELIANCE per cent stake in Russia’s famous of resources was, arguably, ONGC INDUSTRIES, HAS Sakhalin I oil and gas field in Siberia Videsh’s $1.3-billion purchase of a INVESTED $8.2 BILLION for $1.7 billion and later, in 2009, 15 per cent stake in Vankor, Russia’s IN THE US SHALE GAS acquired the Russia-focused Imperial second-biggest oilfield, from Rosneft, INDUSTRY. Energy for $2.1 billion. That makes Russia’s national oil company, which the Vankor purchase the fourth by holds the remaining 85 per cent. OVL.
The field, which is expected to Reliance targets the US give ONGC Videsh Ltd. (OVL), the Though the acquisition is of overseas investment arm of ONGC, “significant strategic importance to OVL isn’t the only Indian energy major about 3.3 million tonnes of oil per India, both in terms of augmentation tying up deals for crude oil supplies annum, has recoverable reserves of of India’s energy security as well abroad. India’s largest private sector 2.5 billion barrels. as adding a new dimension to the company, Reliance Industries Limited relationship between Rosneft and (RIL), which operates the world’s “Vankor is Rosneft’s (and Russia’s) OVL besides further strengthening largest single-location refinery second largest field by production and the cooperation between the two complex at Jamnagar in Gujarat, has accounts for 4 per cent of Russian countries,” as the statement said, it invested $8.2 billion in the US shale www.indiaincorporated.com October 2017 9 COVER FEATURE
THE MOST REPORTED FOREIGN ACQUISITION OF RESOURCES WAS, ARGUABLY, ONGC VIDESH’S $1.3-BILLION PURCHASE OF A 15 PER CENT STAKE IN VANKOR gas industry. The most controversial, and definitely However, falling international crude oil Although India has the world’s the largest Indian investment in prices have hit the profitability of its second-largest coal reserves, it did a foreign country, is undoubtedly joint ventures with Chevron, Pioneer not, till recently, allow the private the Adani Group’s $16.5-billion Natural Resources and Carrizo Oil & sector to mine the mineral and sell Carmichael coal mining project in Gas. it commercially. It permitted private Australia. sector miners to operate only captive Srikanth Venkatachari, RIL’s joint mines for their power, cement or Adani Enterprises recently CFO, told a press conference earlier steel plants. Then, India also lacks announced that it was ready to this year: “We have been scaling sufficient reserves of coal with high proceed with the project, which has down our capex for the shale gas calorific value. This forces many faced environmental protests and business. Looking at the energy companies to go abroad for coal legal hurdles for about seven years. prices, we would be further scaling assets. down investments…” “I am proud to announce the official The Tata Group, India’s largest start of one of the largest single In fact, RIL even infrastructure sold one of its joint and job creating ventures with Pioneer developments in Natural Resources THE BIG NUMBERS Australia’s recent last year for about history,” Gautam $560 million. Adani, Chairman of the Adani Group, After investing $35 billion said in a statement, massive amounts adding that it was in the US shale gas Amount Indian companies “historic day for industry a few years have invested or have Queensland and for ago, Reliance is now $ committed to invest in Indian investment in pulling back slowly mineral exploration abroad Australia.” and cutting fresh investments over the “We have been last few quarters. For challenged by example, it invested activists in the $781 million in the courts, in inner city business last year, $16.5 billion streets, and even down a third from Largest Indian investment outside banks that $1.2 billion in 2015. abroad – Adani Group’s have not even been Carmichael project in approached to Despite the lower $ finance the project… Queensland, Australia investments and We are still facing declining revenues activists. But we are and profits from its committed to this shale gas business, project,” he added in Reliance said it would focus on business house, has acquired iron a filing made to the stock exchanges. lowering the level of its involvement in ore and coal mines in Ivory Coast, this business even as it would retain Liberia, the Republic of Guinea and The group has already put in an the option of scaling it up when prices Mozambique in Africa. Tata Steel, estimated $3.5 billion in buying the improved. which operates these mines, acquired Abbot Point Port, which handles a 35 per cent stake from Australian bulk coal, and putting up other Hunting for coal company Riversdale Mining for infrastructure. The group has already almost $90 million. The coal from awarded contracts for the design, Oil and gas reserves aren’t the only these mines are exported to Tata construction, operations, material mineral fuels Indian companies Steel plants in Europe, India and supply and professional services. It are scouring the world for. The Tata other parts of the world. has also awarded contracts worth at Group, the Adanis, the AV Birla Group least $150 million for laying railway and several others are also in the The Carmichael controversy tracks and concrete sleepers for a global market for coal assets. 388 km railway line connecting the
10 October 2017 INDIA GLOBAL BUSINESS COVER FEATURE But in August, the Adani Group got relief from the top Australian court, THE LARGE INVESTORS which dismissed appeals against the project by an environmental group and an individual representing the rights of indigenous people. The pre- construction work on the Carmichael Tata Group project will begin soon. It will generate 10,000 direct and indirect jobs and extract 25 million tonnes per annum in the first phase by 2020-2021. GVK Group THE TATA GROUP, INDIA’S LARGEST BUSINESS Reliance HOUSE, HAS ACQUIRED Industries IRON ORE AND COAL MINES IN IVORY COAST, LIBERIA, THE REPUBLIC ONGC/ ONGC Videsh OF GUINEA AND MOZAMBIQUE IN AFRICA.
Looking east Adani Group Tata Power, Adani Power and Reliance Power (Anil Ambani Group) have all invested billions of dollars Sesa Goa acquiring large minority stakes in coal mines in Indonesia and other countries to secure supplies for their power plants in India. Tata Power paid Aditya Birla $1.2 billion for 30 per cent in Kaltim Group Prima Coal and Arutmin Indonesia
Tata Power invested about $1.2 billion to acquire a stake of 30 per cent each in two premium coal-producing companies Kaltim Prima Coal (KPC) and Arutmin Indonesia both owned mine to Port Abbot. these projects in other democratic by Bakrie Group, one of the largest countries as well. Ecological activists mining groups in Indonesia. Commenting on the project, claim the Carmichael project will Queensland Premier Annastacia increase carbon emission and But a recent Supreme Court order Palaszczuk said it “is a vote of cause irreversible damage to the disallowing higher tariffs for the 4,000 confidence not just in the Queensland Great Barrier Reef Marine Park in MW Mundhra Ultra Mega Power economy, but in Queensland people.” Queensland. Project, following an increase in taxes levied by the Indonesian government, Development versus environment “The Carmichael mine is an has cast a shadow over these economic disaster but the fact that investments. Environmentalists remain implacably it would pose significant risks to the opposed to the Carmichael project. environment, air pollution, and our The Adani Group and Reliance have One of the reasons why large chances of avoiding runaway climate also been adversely effected by infrastructure and mining projects change means that investors have this order. are so difficult to execute in India also seen this project as laden with is because of the opposition from reputational risk,” Julien Vincent, The final frontier environmental activists and their civil Executive Director of Market Forces, society supporters. an environmental lobby, said in a Large Indian investments in the statement. US, Australia and Indonesia It seems the same problem dogs notwithstanding, Indian companies, www.indiaincorporated.com October 2017 11 COVER FEATURE mainly in the public sector, have focused most of their energies on the But these setbacks should not be With the World Bank predicting that resources and energy sector in Africa, treated as failures as these are India will grow at 8 per cent plus albeit not always very successfully. considered normal business risks in once the goods & services tax (GST) the natural resources exploration and regime stabilises a couple of quarters
As mentioned earlier in this report, extraction sector. Even the biggest from now, the hunger of Indian OVL’s largest investment is its oil and gas and coal companies in industrialists for natural resources purchase of an interest in the Rovuma the world have to abandon many across the world will only grow. Area I gas field, which is expected to promising leads when detailed commence operations from 2022-23. due diligence shows that data on the ground does not justify THE INVESTMENT LOGIC large investments. INDIAN COMPANIES Hungry as ever Need for cheap raw RETAIN THEIR APPETITE materials to feed FOR LARGE AND SMALL domestic industries Despite a few recent setbacks ACQUISITIONS FOR to both private and public NATURAL RESOURCES sector companies, Indian Difficulties in acquiring similar companies retain their resources within India appetite for large and small acquisitions in the natural The public sector Coal India Ltd, too, resources, especially in the Opposition from domestic has invested in Mozambique through energy sector. environmental lobbies to local its wholly owned subsidiary Coal India mining projects Africana Ltd (CIAL). This investment, “A fairly large number of our however, was not successful as the Indian clients in the metal Delays in obtaining company failed to find commercially space are actively looking environmental viable blocks and finally surrendered for acquisitions in Australia,” clearances because its concession. media reports quoted a senior of court cases Like CIAL, the Gujarat State official at a large Australian Petrochemical Corporation, too, bank, which opened an office had to surrender five oil and gas in India to cash in on this blocks in Egypt as these were not appetite for natural resources commercially viable. among Indian companies.
12 October 2017 INDIA GLOBAL BUSINESS PROFILE
Adani weathers storm over Queensland mining project Steadfast support from the public at large is likely to see Adani’s $16.1 billion mining project, India’s largest outbound FDI, through the hurdles.
here appears to be some sort At $16.1 billion, it ranks among the rail link and port venture has received of jinx revolving around projects largest greenfield private FDI projects unstinted support from political parties carrying the twin labels of by any country anywhere in the world. across the Australian spectrum with T“largest FDI” and “India.” Remember the exception – perhaps expected – of Dabhol? The Carmichael project the Australian Greens party. The project involves mining coal in The power project by the now Queensland’s Galilee Basin coal This is significant as politicians who bankrupt US company Enron in tenements, which are estimated to are expected to know a thing or two Maharashtra was the largest inward hold 7.8 billion tonnes of reserves. The about the public mood and parties FDI project at the time. After several greenfield project includes both open in democracies, scrupulously avoid false starts, it is finally limping along cast as well as underground mining. It decisions that the ordinary voter does as the Ratnagiri Power Company, in also involves building a 388-kilometre not approve. its latest, public sector avatar. railway line to connect the mine to Abbot Point. The Adani Group had But in Australia as in India – and, Then came South Korean acquired the coal terminal at this port indeed, in all democracies – small steelmaker Posco’s tryst with Indian from the Queensland government in but well-funded and powerful special environmental activists in Odisha. 2011 for almost $2 billion on a 99-year interest groups often launch high lease. decibel campaigns against projects The project, envisaged as the largest that they oppose on ideological FDI project in India has now been Coal from this mine will be shipped grounds. abandoned. to India to fire Adani’s thermal power plants in this country. Two of the most vocal supporters are Unlike the two examples above, the Queensland state government led Gautam Adani’s Carmichael coal mine Support from political parties by the Labour Party as well as the project in Australia’s Queensland is Despite the controversies generated Australian government, which is run an outbound FDI deal – India’s largest by environmental activists opposed by the Liberal-National coalition. The outbound investment yet. to the project, the Carmichael mine, two parties have set aside their bitter www.indiaincorporated.com October 2017 13 PROFILE political rivalry to support the project, They further claim that the mine thousand activists – and largely which is expected to create 10,000 will generate 4.7 billion tonnes of ignored by mainstream politicians www.indiaincorporated.com jobs in Australia. Australian Prime greenhouse gases and use up more – has been suspiciously receiving Minister Malcolm Turnbull has gone than 0.5 per cent of the global climate good coverage in the media. “Coal further and projected that the venture budget that has been proposed has become the villain for a lot of will generate tens of thousands of to limit the rise in global warming Australians and Adani is very much a jobs for Australians at the mine, to less than 2 degrees Celsius in part of that broad narrative,” a political railway line and the port. On a recent accordance with the Paris Climate scientist at the Griffith University visit to India, he had a private meeting Pact. The decision of the Government in Queensland was quoted by the The home of India-related foreign direct investment with Adani Group Chairman Gautam of Queensland to grant Adani a media. Adani and promised that the issues license to use groundwater from the Publishers of India Global Business magazine and India Investment Journal. plaguing the project will be resolved. Great Artesian Basin for 60 years Celebrities join the chorus for use in the mine is also being A short while before the Queensland London-based India Inc. develops bespoke campaigns on specific policy Then, earlier this year, Annastacia used by the activists to fuel fear of premier’s show of solidarity with initiatives and delivers business opportunities for clients around India's Palaszczuk, the head of the water shortages among farmers and Adani earlier this year, a group of Queensland government visited ranchers. Australian activists visited the Adani increasingly globalised economic agenda. Adani’s Mundra Port with eight headquarters in Ahmedabad. They mayors from her state to show could not meet Gautam Adani but solidarity with Adani’s Carmichael did submit a letter signed by a group project and to show that the people of GAUTAM ADANI’S of famous Australians including Queensland support the venture. CARMICHAEL COAL MINE former Aussie cricket captains, Ian The Government of Queensland PROJECT IN AUSTRALIA’S and Greg Chappell and authors declared the venture a “significant QUEENSLAND IS AN Richard Flanagan and Tim Winton, project”, thus, setting the stage for OUTBOUND FDI DEAL calling upon the Adani Group to it to undergo a comprehensive “abandon the Adani Group’s proposal environment impact assessment. The – INDIA’S LARGEST to dig the Carmichael coal mine in lengthy and very stringent process – OUTBOUND INVESTMENT Queensland’s Galilee Basin”. Australian environmental standards YET. are among the strictest in the world “I feel deeply about climate change. – began in 2011 and ended with the Coal is not the future, it is the past. Adani Group securing the mining According to experts, the mine is lease in 2016. Well-funded campaign not financially viable. Adani’s track- The opposing groups have formed a record in India is not great. This mine The Environment Impact Study (EIS), “Stop Adani” alliance and organised should not happen,” Ian Chappell was which is available online, is massive protests and roadshows outside quoted in the media as telling the multi-part document. The executive banks and the offices of politicians correspondent who filed the report. summary alone is 35 pages long urging them not to fund and, instead, Chappel also felt the project could and concludes: “…Based on the scrap the project. hamper relations between India and findings of the EIS… the project can Australia. “It has the propensity to be undertaken without unacceptable It isn’t yet clear who is financing these hamper relations.” social, environmental and cultural protests but media reports T-shirts, impact. The project also presents a bandanas, caps, socks and earrings The Adani response range of opportunities and positive with “Stop Adani” emblazoned on The Adani Group issued a media impacts to regional and state them are fairly easily available on statement in response to the economies.” many Australian streets. letter pointing out that the project enjoyed popular support among Despite this, a small group of Videos carrying messages opposing Queenslanders. “We categorically
environmentalists and activists have the project, graffiti in public toilets reject such motivated letters of “ We deliver business opportunities and insights for our been opposing the project. and on streets as well as protestors representation by a very small group clients, by engaging senior leaders, and producing“ performing songs asking people of 76 misled people,” it said. Why activists are opposing the to “Stop Adani” have sprung up at incisive content and impactful events, globally. project various places. Media reports further Given that the Adani project has anoj Ladwa Fo nder EO anaging Editor India Inc. Those opposing the project are point out that the protestors have already cleared the stringent dictates concerned that coal from the also put up Adani’s pictures on large of the Enviromental Impact Study Carmichael mine will damage the billboards with words like ‘destruction’ and has the continuing support from Great Barrier Reef. They speculate and ‘exploitation’ written over them. politicians across the Australian dredging up 1.1 million cubic meters This obviously points to good political spectrum, it is likely that this of the seabed near the reef will organisation and deep pockets. hiccup will soon be resolved and the Go to indiaincorporated.com for more info or to register damage the Great Barrier Reef project will soon take off. Marine Park beyond repair. The campaign, despite its few
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TURNAROUND AT STANLOW REFLECTS ESSAR OIL’S GLOBAL VISION S. Thangapandian, Chief Executive Officer of Essar Oil UK, takes time out for ‘India Global Business’ to explain why the company is investing heavily in its Stanlow Refinery in Britain and the story behind turning a loss-making unit into a promising asset.
16 October 2017 INDIA GLOBAL BUSINESS INTERVIEWINTERVIEW hat are the company’s undertaken during the major block for the highest CD4 Distiller crude investment plans for the turnaround in 2018 will drive a further throughput under Essar ownership, UK? $2 per barrel in margin improvements. the highest ever amount of residue W upgraded via Europe’s largest Essar Oil (UK) Ltd, which owns and How has the refinery evolved under Catalytic Cracker and the highest ever operates the Stanlow Refinery, will be Essar? production levels of diesel, alkylate investing further $250 million in the and propylene. refinery. We have already invested Within a span of six years after over $800 million to turn around acquiring the strategic Stanlow Safety performance remains a the business since we acquired the refinery from Shell, Essar Oil UK has critical business objective, with Stanlow refinery. This reaffirms the turned around the loss-making unit continuous investment in Health, group’s commitments to stay invested with a record net profit of $187 million Safety and Environment (HSE) to in core sectors. These investments in 2015-16 as it optimised processes, further improve standards. Stanlow will ramp up the throughput from 68 diversified crude basket and invested achieved the Order of Distinction million bpd to 75 million bpd. in margin improvement programmes. for 21 consecutive Gold awards in the Royal Society for the Prevention Investment will also deliver enhanced The turnaround of the Stanlow of Accidents (RoSPA) Health and yields of high value products, reduce refinery demonstrates Essar’s Safety Awards 2017. Connection to crude costs and drive revenue growth. commitment to grow the Essar Oil the national gas grid enabled the UK business and remain invested refinery to meet tighter environmental Essar has committed this year to a in the oil & gas sector. Essar has legislation regarding emissions. significant multi-million-dollar capex invested over $800 million to turn investment in the Tiger Cub project around the business since it acquired How is the network of Essar- at Stanlow to deliver improved the Stanlow refinery. The refinery is branded filling stations in the UK yields across the product slate and today a national asset meeting 16 per coming along? drive revenue growth. In addition, cent of the UK’s road transport fuel the continued ambitious expansion demand. Being the only Indian firm to own of our UK retail network and direct and operate a refinery in Europe, aviation fuel supply business are Essar has also entered into auto fuel also important strategic elements in INVESTMENT WILL ALSO retailing in UK. Currently, we have the drive to build a fully integrated DELIVER ENHANCED 42 branded retail outlets. We plan to downstream energy company. This YIELDS OF HIGH VALUE open our first company-owned station is on the back of a strong FY17 PRODUCTS, REDUCE close to the refinery in the beginning of next year. performance, following record results CRUDE COSTS AND DRIVE posted the previous year. REVENUE GROWTH. We plan to raise the number to 400 Although we saw a marked $2.1/ in the next five years. The idea is bbl decrease in the wider industry to carve out 10 per cent of the UK benchmark margin, our excellent This equates to an annual production market by playing on the ‘Made in operational reliability and ongoing of over 4.4 billion litres of diesel, 3 UK’ platform and promising simpler margin booster projects saw our own billion litres of petrol and 2 billion litres contracts and improved financial margins reduce by less than half this of jet fuel. Our process units optimise and supply terms to dealers. The amount, which demonstrates the our output, with over 9 million tonnes successful turnaround of the refinery enormous progress made within the of crude oil and feed-stock processed gives the company a vantage position business each year, making us one of the since most of the players source biggest refineries in the country. products from plants run by others Please give details about the Tiger or import. Cub project at Stanlow. Today, we are a major supplier in north-west England with customers How important is the aviation Under Project Tiger Cub, the Stanlow including most of the major retail market for the UK business? refinery in the UK will see major brands operated by international improvements to key units at the oil companies and hypermarkets, Combining our refinery supply site to deliver further reduction in together with Manchester Airport and strength and marketing capabilities crude costs and improved yields the region’s trains and buses. This is the key to achieving the objectives across the product slate. Investment effectively means that whatever mode of value chain integration. We will be in the Catalytic Cracker and of transport you use in the region, it are already a major player in the prudent technology, which will allow is likely it could be running on fuel wholesale supply of Jet A-1 to UK us to improve the yields of higher provided by our refinery. airports and during the year secured value products at lower costs. Project During FY17, a number of new agreements for the direct supply of Tiger Cub and the additional works monthly records were established aviation fuel to major airlines such as www.indiaincorporated.com October 2017 17 INTERVIEW
Emirates, Etihad, Oman Air and What does the Rosneft deal mean As for Essar Oil UK refinery, we are Jet2.com. for the Essar Group? seriously looking into increasing production of petrochemical Our recent deal to supply aviation It would not be appropriate for me to production, which gives us higher fuel direct to Etihad Airways was comment on the recent Essar-Rosneft margins vis-à-vis normal products. another significant step in realising deal. I can only speak for Essar Oil This year, we have increased our objective of value chain UK business as that is the business I production to 10 per cent from 8 per integration by combining our refinery manage. cent last year. We are looking into the supply strength with our marketing study to see how much further we capabilities in the aviation sector. can increase. This is aligned with our strategy of expanding the downstream presence ESSAR HAS INVESTED We are also looking into production of the business. OVER $800 MILLION of cleaner fuel, though that is in a very nascent state. By cleaner fuel, TO TURN AROUND THE Essar Stanlow produces 16 per we mean electric fuel, the demand for cent of the UK’s road transport fuel BUSINESS SINCE IT which is likely to grow substantially demand and manufactures over 2 ACQUIRED THE STANLOW over the next decade as governments billion litres of jet fuel each year, REFINERY across the globe are seriously playing a key role in the country’s considering shifting to manufacturing aviation industry. electric cars.
We intend to strongly grow in this part What is the appetite of the Essar Will the sale of the Indian of our business. Group in this sector now that the operations to Rosneft impact the bulk of the company has been operating synergies of the UK Does Brexit present particular sold? business? challenges for the oil industry? Though we have sold off our Indian Essar Oil UK is one of the leading As far as Essar is concerned, we operations of Essar Oil, we have not players in the UK’s oil and chemical have benefited from Brexit as most of exited the oil and gas business. As industry. The sale of Essar Oil’s Indian our costs are incurred in pounds. With stated above we have invested operations to Rosneft will not affect Brexit, the pound has depreciated $250 million in the refinery and the operation of Essar Oil UK in against dollar, which has resulted in that reaffirms our commitment to the any way. saving of around $40-45 million yearly sector. in costs.
18 October 2017 INDIA GLOBAL BUSINESS INDIA-UK
Indian renewables agency strikes Bond with UK
The Indian Renewable Energy Development Agency (IREDA) has become the latest Indian entity to launch a new Green Masala Bond on the London Stock Exchange.
he Indian Renewable Energy “The overwhelming response to the emerging technologies, and bio Development Agency (IREDA) issue is a testament to the confidence energy sectors. listed new a new Green Masala of global investors in IREDA and the TBond on International Securities Indian renewable sector in general,” “The IREDA Green Masala Bond Market (ISM) to raise funds to finance he added. illustrates government of India’s renewable energy projects across commitment towards fostering the India. renewable and sustainable energy sector. Renewable energy will The five-year dated bond raised IREDA, A STATE-OWNED increasingly become the dominant approximately $300 million (Rs 19.5 NON-BANKING FINANCIAL force in energy generation, as we billion), with a coupon of 7.125 per INSTITUTION, HAS A strive for ‘Electricity for All’ and cent, and became the first Green REMIT TO PROMOTE, achieve our mandate of 175 GW Masala Bond to be listed on the ISM. renewable energy capacity by 2022,” DEVELOP AND EXTEND said Anand Kumar, Secretary, Ministry “IREDA is fully committed to helping FINANCIAL ASSISTANCE of New and Renewable Energy. achieve Indian Government’s vision of FOR RENEWABLE ENERGY 175 GW renewable energy capacity AND ENERGY EFFICIENCY Advancements in technology and a by 2022.The Green Masala Bond is CONSERVATION drop in the price of solar and wind a significant milestone for IREDA in PROJECTS IN INDIA. energy have set India on the course this regard, as we embark on the next to not only achieve its renewables phase of renewable and sustainable target, but exceed it, he noted. energy led expansion,” said Kuljit Singh Popli, Chairman and Managing IREDA, a state-owned non-banking The new green bond is certified Director of IREDA, at a special market financial institution, has a remit to by Climate Bonds Initiative, an opening ceremony at the London promote, develop and extend financial international, investor-focused not-for- Stock Exchange on at the end of assistance for renewable energy profit, which helps build robust and September. He described the listing and energy efficiency conservation transparent assurance frameworks as a step towards Prime Minister projects in India. The company around green bond investment. Narendra Modi’s commitment to the provides financing for hydro, wind Paris agreement on Climate Change. and solar energy projects, new and It marks the fourth green bond www.indiaincorporated.com October 2017 19 INDIA-UK by an Indian issuer to be issued position Britain as a world-leader in determined to support Green Bond on London Stock Exchange. Axis green finance. issuances by supranational, municipal Bank and NTPC joined in 2016, and private company institutions raising respectively $500 million “The government is committed to on its markets. LSEG is home to a and $300 million equivalent. In June building on this success and recently number of global first Green Bond this year, the Rural Electrification set out measures to draw on the issuances from Bank of China and Corporation(REC) raised $450 million. expertise of the City to accelerate the Agricultural Bank of China, India’s London Stock Exchange claims to growth of products like green bonds. Axis Bank, Development Bank of be the largest Masala Bond centre We are committed to growing our Japan and the IFC, a member of the globally, with 42 bonds listed in total economy while reducing emissions World Bank Group. with an equivalent value of over and recognise the huge opportunities $6 billion. presented by the unstoppable move Green Bonds are fundraising tools to a low carbon economy.” created to fund projects that have Xavier Rolet, CEO, London Stock positive environmental and climate Exchange Group, said: “The listing of London Stock Exchange said it is benefits. the first green masala bond on our new International Securities Market is a Indian Bonds at London Stock Exchange significant milestone that we are honoured to celebrate June 2017 June 2016 with Chairman Popli and his team. Rural Electri cation Corporation’s Axis Bank lists India’s rst “There is an indisputable (REC) launches rst ten year dated internationally listed certi ed shift in momentum in green green bond raising $450 million green bond & its entire $5 billion and sustainable financing MTN programme across the world and London Stock Exchange Group is January 2017 proud to be spearheading the growing global green June 2016 and sustainable financing movement, developing European Bank for Reconstruction innovative products and & Development issues $62 million First Chinese sovereign RMB bond services in partnership with masala bond, the rst in London issued outside of China lists in our customers.” and Europe in 2017 London, bringing total number of offshore RMB bonds issued in London Stock Exchange 2016 alone in London to 54, more claims to be the largest September 2016 than all other offshore RMB Masala Bond centre globally, markets combined with 42 bonds listed in total with an equivalent value of British Columbia issues world’s rst over $6 billion. The Exchange Masala bond by a foreign said it has been firmly government entity August 2015 committed to developing long-term strategic partnerships with issuers to August 2016 International Finance Corporation ensure the success of this (IFC) issues world’s rst offshore financing stream and help green Masala bond, raising Masala Bonds evolve from NTPC, Indian energy conglomerate $52 million equivalent specialist to a mainstream becomes rst Indian green Masala asset class. bond issuer February 2014 Jo Johnson, UK Minister of State for Universities, July 2016 Science, Research and IFC lists rst Rupee denominated Innovation, said: “The bond, going on to issue a further London Stock Exchange is HDFC lists world’s rst Masala 3 Masala bonds in London over the largest, and greenest, bond by an Indian corporate 2 years in Europe and has helped
20 October 2017 INDIA GLOBAL BUSINESS SPECIAL REPORT
Jaguar Land Rover goes all electric Tata Motors owned Jaguar Land Rover (JLR) has unveiled ambitious plans to electrify all its vehicles from 2020 as part of a more greener strategy.
ata Motors owned Jaguar JLR has not yet set a timeline for a plans behind this bold statement. We, Land Rover (JLR) recently move away from petrol entirely. as a company, can deliver electric announced that all its new The company has also issued a vehicles. Where is the network of Tmodels will be electrified from the challenge to the UK government to charging points that they will require year 2020. match the industry’s ambition and to function? Indeed, where is the bring society together to deliver a new power grid that will allow us to build The luxury brand, acquired by the world of mobility. them? Indian automotive giant nine years ago, unveiled plans for a range of fully Speth said: “Can the UK compete “We know the levels of connectivity electric, plug-in hybrid and mild hybrid with other nations who are moving that will be needed in the future. To vehicles in the coming years. fast in developing the technology, allow autonomous vehicles. Freeing infrastructures and collaborations to individuals. Increasing productivity. “Every new Jaguar Land Rover model shape the future of mobility? Reducing accidents. line will be electrified from 2020, “This country has the intellect, giving our customers even more imagination and ideas, as you will see “We know of the 5G network the rest choice. We will introduce a portfolio of today. It always has. of the world is working upon to enable electrified products across our model it. Where is it here?” range, embracing fully electric, plug- “But history tells us too often it has in hybrid and mild hybrid vehicles,” failed in delivery. And in this new The company also presented the Dr Ralf Speth, JLR Chief Executive mobility revolution, if there is not a Jaguar Future-Type as a vision for the Officer, revealed at the inaugural Tech nimbleness in response, the danger car of 2040 and beyond. Fest in London. of failure is too harsh to contemplate. “The fully autonomous virtual concept “Our first fully electric performance “Dates are set by UK government explores mobility for the connected SUV, the Jaguar I-PACE, goes on for the banning of diesel and petrol world of tomorrow, where vehicles sale next year,” he said. vehicles by 2040, but with no detailed could be shared not owned,” JLR said. www.indiaincorporated.com October 2017 21 SPECIAL REPORT It includes Sayer, the first voice- benefit. We are now a global company band Gorillaz, successful players will activated artificial intelligence (AI) with a reach and facilities across the be first in the queue for a chance to steering wheel that will be able to world. Becoming truly international work at JLR. carry out hundreds of tasks. has not diluted our Britishness, it has enriched us. The event was packed with innovative “The advanced speech recognition exhibits and interactive displays to software will allow it to answer your demonstrate how technology is being questions, connect you to the news, used to make a positive difference. organise your travel and select your “WE AS A COMPANY Some of the aspects included the entertainment. Sayer knows what’s in CAN DELIVER ELECTRIC “Waste to Wave” surfboard project as your fridge and can even order your an example of a number of innovative shopping or a pizza. You will never run VEHICLES. WHERE IS THE recycling initiatives which give a out of milk again. It will be your go-to NETWORK OF CHARGING second life to materials previously device,” JLR claims. POINTS THAT THEY WILL destined for landfill. REQUIRE TO FUNCTION? Speth called on the world to move to INDEED, WHERE IS THE JLR also demonstrated its a new level of globalisation to meet “Autonomous Urban Drive” research the social and technological demands POWER GRID THAT WILL technology, which can enable a of a worldwide mobility revolution. ALLOW US TO BUILD vehicle to operate without a driver THEM?” through a city, obeying traffic lights He said: “Our era of globalisation has as well as negotiating T-junctions and been both a positive and a negative. roundabouts, already in use in its For a country like the UK it lowered “That is why the next stage of Range Rover Sport model. the costs of imports, improving the globalisation – Globalisation 2.0 if quality of lives. It also saw the export you like – must be about more than The “Night Time Sun” installation, a of jobs diminishing the quality of life competition. It must mature into collaboration between several artists, in many communities and, in some collaboration.” uses solar lamps from JLR’s “Lighting cases, leading to their extinction. Up Lives” project to harness the sun’s JLR’s also hosted a first-ever Tech power to transform lives. Working with “We have to accept that in a time Fest in London in September based Climate Care, the company is working when innovation can come from any on the theme of “Technology with on providing clean, safe, renewable continent, differing social conditions Heart”. It was marked by a series solar-powered lamps to families in can be the difference in the speed of of debates and discussions on the Kenya, giving up to four hours of delivery of those ideas. future of mobility and technology additional light every evening. The and includes a live challenge to test company said it plans to light up the “For a company like Jaguar Land potential JLR recruits’ technical ability, lives of 1.2 million people by 2020 as Rover – a quintessentially British logical-thinking and memory. As part part of the project. company – globalisation has been a of a tie-up with award-winning virtual
jaguarlandrover.com NEWS IN BRIEF
Indian firms Acquisitions in the field of software and pharmaceuticals dominated the Indian march across make a Europe UK and Europe in recent months. mark
Tata Steel completes sale Infosys completes of UK mills Bengaluru firm to set acquisition of Brilliant
he UK’s Liberty House Group up in London Basics has completed the purchase of engaluru-headquartered two pipe mills from Tata Steel engaluru-headquartered Infosys has completed the TUK in north-east England. RxPrism plans to set up a regional innovation hub in acquisition of Brilliant Basics, BLondon to expand its footprint in Ba London-based product design and Liberty, which is part of the GFG customer experience company. Alliance, had signed a provisional the UK and Europe. agreement to acquire the units at Through this acquisition, Infosys Hartlepool last month and appointed The global healthcare-focused further expands its worldwide top steel pipe specialist, James digital marketing and customer connected network of Digital Studios Annal, to head the new pipe and tube engagement services and that are focused on fulfilling the needs division. Sanjeev Gupta, the executive solutions provider is among of global clients for end-to-end Digital chairman of Liberty House, said the 20 start-ups selected in this Transformation solutions required deal marked his group’s plans to play year’s India Emerging 20 (IE20) to meet customer demand for next a key role in the global oil and gas programme, which supports generation enhanced customer pipeline sector. Indian companies to grow their international business via London. experiences. He said: “This is an important first “Brilliant Basics is a global design and step in our ambition to become a Dr Maruthi Viswanathan, product studio that creates products world leader in energy pipe and Founder-CEO of RxPrism Health that make life simply better. We we are already looking at plants in Systems, said: “London was an help clients throughout all stages of other countries. The acquisition of immediate choice as the place is their business and digital roadmap: this high-calibre business and its appropriately positioned to cover generating innovative ideas, shaping skilled workforce gives us the basis the US and APAC time zones. them into valuable digital products to upgrade the liquid steel production We have already registered our and experiences, launching the MVP facilities we’re buying at Whyalla, subsidiary in the UK. Therefore, rapidly, and continuously optimising South Australia, and our plate mills at we aim to complete this the experience based on data and Dalzell and Clydebridge in Scotland expansion plan in about three insights,” the company said in a to make high-value-added API grade months from now and get the UK statement. plates that can be rolled at Hartlepool centre functional by this October- to supply pipeline projects worldwide. December.” The acquisition extends Infosys’ digital design services network to include “This fully-integrated value chain The firm is planning to invest $2 Europe and the Middle East, and will make us a world leader in this million over two years, a part enhances the company’s expertise field and help showcase Britain's of which would come from the across financial services, retail and engineering prowess in supplying company’s innovation fund and telco sectors. a world-class highly-engineered the rest from UK-based venture product.” capitalists. The move is part of the company’s attempts to move away from its Liberty has said it intends to rebuild The company is set to create traditional role of supplying manpower the previously struggling operation over 250 job opportunities for to international clients on a ‘time at Hartlepool, adding around 100 software developers and creative and effort’ billing basis to developing new jobs to the existing 140-strong specialists in the next two years, software and solutions. workforce. with 30 per cent of this strength working in its R&D lab. www.indiaincorporated.com October 2017 23 NEWS IN BRIEF Aurobindo Pharma to Eicher Motors closes in expand to EU Jindal Poly Films to on Ducati acquire Dutch firm
ndian packaging films maker Jindal Poly Films Ltd has agreed to acquire the INetherlands-based Apeldoorn Flexible Packaging Holding BV for an enterprise value of €82.3 million in cash.
The transaction will require anti- trust approvals in the Netherlands and Germany and is likely to be closed by the end of September, Jindal Poly said in a stock exchange filing in India. It added that the acquisition would be made through its JPF Netherlands BV unit.
ndia’s Hyderabad-headquartered ndia’s Eicher Motors Ltd, the Aurobindo Pharma is planning an parent company of Royal Enfield, expansion into European Union is closing in with a binding bid to I(EU) countries such as Poland and Ibuy Italian motorcycle manufacturer the Czech Republic.The company is Ducati at an estimated cost ranging also eyeing growth in Italy and Spain between $1.8-2 billion. and plans to launch various new products in the US market as part of German carmaker Volkswagen a wider strategy for the next three- is considering options for Ducati, four years. including a sale of the brand, wholly controlled by VW’s Audi division. “Lower generic penetration in Italy, Spain, Portugal and France offers Volkswagen had put the sale on hold future growth potential as the share of Jindal Poly Films said the after resistance from German trade generics improves,” the company said acquisition will help it increase unions and internal rifts on strategy. in an investor presentation. its product offerings by adding There are talks that VW had told five load security films. The deal will bidders to hold off making binding The company is working on plans also strengthen its relationship bids for the motorbike brand, which it to launch cancer treatment and with brand owners in the food, put up for sale in April to help fund a injectable products in the EU. With the beverage and fast-moving strategic overhaul. acquisition of Generis Farmaceutica consumer goods segments. SA, it claims to have catapulted into Basudeb Banerjee, analyst at the big league in the Portuguese The company added that it aims Mumbai’s Antique Stockbroking, was generic market. It has also completed to expand its differentiated product quoted as saying: “Ducati being a the acquisition of the Orocal brand to offerings in the packaging films well-renowned brand will help Eicher leverage its position as a key player in business globally. in terms of design and technology, the French drug market. which in turn will help expand the Apeldoorn was set up in 2014 Royal Enfield product portfolio in the In the US, Aurobindo aims to broaden and besides load security films, years to come.” its portfolio through accelerated it makes bread and cheese growth in injectables, over the packaging films. Its consolidated A few of the other bidders include counter (OTC) and higher complexity revenue was €111 million for the Harley Davidson, Suzuki, Bajaj Auto products. calendar year 2016. and Hero MotoCorp Ltd.
24 October 2017 INDIA GLOBAL BUSINESS INDIA-US
Can the Indian IT sector overcome the H-1B hurdles? by Gaurav Khanna
A US-based academic analyses how the Indian IT industry is coping with an intensifying squeeze on HI-B visas.
n recent months, the US lower-wage Indian-born workers at To understand how Indian tech firms government has been exerting the expense of American citizens. tackled their hurdles in the past, it is pressure to curb the H-1B visa Firms in the US tech sector, on the important to go back to the 1990s, Iprogramme for companies that rely on other hand, maintain that the visas when Indian computer scientists first them and is stressing the importance are essential to attract global talent starting playing a major role in the behind its Hire America policies. The and maintain their competitiveness. US IT boom. The fraction of foreign- H-1B programme has come under And lost competitiveness is a genuine born workers in US computer-science severe scrutiny, much to the concern concern; India has overtaken the US occupations rose rapidly from 9 of its biggest benefactors: Indian tech as the major exporter of IT in the last per cent in 1994 to 25 per cent by companies. Indian firms, however, are decade. How, then, did Indian-owned 2012, and India’s share in visas grew trying to adapt. firms become the major sponsors of quickly from 39 per cent in 1997 to H-1Bs? How did these firms surpass 70 per cent in 2015. A combination One of the leading sponsors of the long-held IT exporting advantage of low-wages, good engineering high-skilled visas, Infosys, recently held by the US? Indian tech colleges, comfort with the English announced it would hire 10,000 language, and connections from the American workers. This measure has previous hardware boom, made India been seen by some as a possible an attractive source of employment WITH THE INDIAN SECTOR for US firms. response to the political rhetoric NOW WELL DEVELOPED, underlying the H-1B scrutiny. But more importantly, it is also a sign THE INABILITY OF FIRMS At the same time, the prospect of that Indian tech companies are IN THE US TO HIRE migrating and earning a wage that ready to take measures to ensure WORKERS FROM ABROAD is as much as 10 times higher in the US encouraged some students and their continued benefits from the MAY FURTHER SHIFT programme. workers in India to acquire skills and PRODUCTION AWAY FROM degrees that were valued abroad. To evaluate proposed changes to THE US AND TO INDIA. The number of visas, however, is the H-1B regime, and the recent capped, and a large fraction of Indian Infosys announcement, it helps to engineers, trained for opportunities in understand how we got here. Indian- the US, never got a visa. Remaining owned companies like Infosys, Wipro, companies have in the past overcome in India, they formed a skilled worker HCL and TCS have consistently been numerous hurdles, from poor access base in the country. The skill-base among the largest sponsors of H-1Bs, to venture capital, infrastructure, and in India was made richer by the fact and critics of the visa programme talent. But now they must grapple that H-1B visas expire after six years, fear that such immigration benefits with newer hurdles from the H-1B and many workers returned to India, programme. bringing with them acquired technical www.indiaincorporated.com October 2017 25 INDIA-US
know-how and connections. But how well founded are the now well developed, the inability of concerns that US politicians have firms in the US to hire workers from Tapping into this workforce, Indian that are behind these curbs? In our abroad may further shift production IT firms, like Infosys and Wipro, own research, we show that the H-1B away from the US and to India. expanded rapidly to become major programme has large and widely Infosys filed 9,000 H-1B applications players in the global software shared benefits for US economy, in 2015, 6,500 in 2016, and only market. By the early 2000s, the US even if some American citizens 1,000 this year, an 85 per cent fall boom spread to India because of a face increased competition in the in applications. Indian workers that combination of factors, including the labour market. An available stock would have otherwise come to the US H-1B programme. of foreign workers allowed firms in to work for Infosys may either work the US to expand production and in the booming Indian IT sector, or By 2010, Indian firms, like Infosys, lower prices, benefiting American migrate to other countries, helping responded to demand from US consumers that now use better develop the tech sector in Canada or clients by significantly expanding software and apps. Businesses Europe. their operations in the US, going benefit, too; many sectors in the from 26,700 employees in 2007 to US, from finance to manufacturing While H-1B critics may have scored 52,400 employees in 2014. These to small businesses, now use more a win by scaring firms like Infosys firms were now the major sponsors efficient software, generating broad into starting a new Hire American of H-1B visas. There were clear increases in economic wellbeing. strategy, such curbs may just lead advantages of having establishments The rise in IT firm profits encouraged to the US tech sector sending more in the US: there was a large market newer entrants and the development work abroad to India. And off-shoring for client services and demand of newer technologies. While the production can be bad news for native for custom software development. H-1B programme did depress wage US workers. Importantly, the same worker is more growth for computer programmemers, productive in the US than in India. an immigration-led expansion of A combination of factors, like better the tech sector raised wages for Gaurav Khanna is Assistant infrastructure and technology, and almost all other workers. Curbing the Professor of Economics the benefit of exchanging ideas with programme may benefit programmers at the School of Global those in Silicon Valley, increases the who are already US citizens, but Policy and Strategy at the productivity of workers, and makes would hurt the average US worker, University of California – the US an attractive location for firm and economy as a whole. Indian firms like Infosys. Indian firms San Diego. His research seek to hire Indian workers, even for Without the H-1B programme can the focuses on education US-based positions, because they Indian tech sector survive? In short, policy, high-skill immigration, have extensive networks in India and yes it will. Ever since the mid-2000s, infrastructure, public-works better knowledge of the Indian labour India has been the largest exporter programs and conflict. market. of IT products. With the Indian sector
26 October 2017 INDIA GLOBAL BUSINESS NEWS IN BRIEF
India-US work With a range of investments in recent weeks, Indian on state-wise companies are on a job creation spree in the US. strategy
Lenskart invests $1mn in India, US work on Mankind Pharma to America’s Ditto state-wise strategy enter US Market ew Delhi-based Mankind Pharma Ltd is working to make inroads in the US Nmarket and plans to file its first set of generic products with the regulator in 2018.
Rajeev Juneja, chief executive ndian eyewear e-tailer Lenskart officer of Mankind Pharma, said: has invested $1 million in US- “We will develop innovative based Ditto, which develops 3D products for the US market. We Iface models for Lenskart’s virtual trial ndia and the US are working out a are setting up a manufacturing special strategy to boost state-lev- service. plant in the US with a total el engagement to widen bilateral investment of $30 million. Itrade and investment ties. Lenskart already employs Ditto's 3D We are establishing this US try-on services on its website. With manufacturing organically. the integration of Ditto, the company The US India Business Council (USIBC) will unveil a State will be able to enhance its online "The building setup is ready; Engagement Task Force (SET) engagement with consumers. however, equipment and utilities soon to ensure American and Indian are under commissioning” Peyush Bansal, Founder and CEO companies align their interests with the priorities of state governments in of the company, said that further He added that the company is both the countries. integration will help the company also in the process of getting enhance its social aspect where some of its Indian units approved USIBC acting president Khush consumers can share how they look by the US Food and Drug Choksy told Indian media that with the glasses on with their friends Administration (FDA). and relatives on social media. nominations had been sought from its member companies for this new While the company has been strategy. As part of SET, preliminary He said: "It is sizeable funding for successful in the domestic discussions have been held on skill an early stage start-up. We have market, which accounts for development and entrepreneurship been evaluating our relationship and nearly 90 per cent of its revenue, promotion in Nagaland and talks on now want to take it to the next level. analysts believe that tapping the infrastructure development and job- Nobody in the world has a similar US market will be challenging creation in eastern and north-eastern technology. as the company is a late entrant India have also taken place. compared to its Indian peers and "Our focus is to be the largest current market conditions in the He said: “The USIBC wants a win- technology focused eyewear company US are challenging. and make the online experience as win outcome for businesses on both the sides. We are supportive of free much fun as the offline experience." Although the company is trying movement of goods and services.” to increase its international The technology allows the users presence, the Indian market will Similar discussions will also be held to see themselves in eyewear in be its priority as it aims to be with the US state governments to 180-degree angles. The response to among the top three players in the identify priorities on that side. this service has been impressive with country. over 10,000 trials a day. www.indiaincorporated.com October 2017 27 NEWS IN BRIEF Wipro sets up California Infosys to create 2,000 innovation centre Cyient to acquire US American jobs design firm
ndian IT major Cyient has entered into a definitive agreement to acquire 100 per Icent equity in the US-based B&F Design Inc. The company said the acquisition will be carried out through its step down subsidiary Cyient Defense Services Inc.
B&F Design’s area of expertise includes design and manufacturing of precision engine assembly equipment, repair ndian software giant Wipro has tooling, machining of fixtures launched a new innovation centre and gauges, and engine factory modernisation services period. T software exporter, Infosys, said in California. The R&D and incu- that it will open a technology and Ibation hub is aimed at showcasing innovation hub in Raleigh, North next-generation technologies and ICarolina, in the US which is expected solutions and collaborating with tech- to hire 2,000 American workers by nology start-ups in the Silicon Valley, 2021. the company said in a statement. The Bengaluru-based company plans The innovation centre will cover to create 10,000 local jobs in the artificial intelligence, virtual reality, US over two years and said it has hyper spectral imaging, machine This is Cyients sixth acquisition already hired close to 1,200 American vision and collaborative robotics and in the last three years as part of workers. automation. its Design Build Maintain strategy. Cyient holds a strong cash The new centre, which is to open “The main intention behind this is to position of $155 million and will in early 2018, will occupy 60,000 solve real-world challenges faced continue to look for acquisitions sq ft and has the capacity to house by enterprises and to serve as a that will enable the company to 500 workers. Infosys plans to hire value creator for technology start- realise its strategy and the goal the first 500 workers in the Raleigh ups and entrepreneurs by helping of industry-leading growth, a innovation hub within two years, with them sustain and participate in the statement from Cyient said. the remainder to be hired in the state innovation ecosystem,” Wipro said. by 2021. Anand Parameswaran, Senior The innovation centre also expects Vice President for Aerospace and Infosys said that new hires at the to finalise technology research Defence, said: “Cyient holds a Raleigh facility would include recent partnerships with leading universities leadership position in providing graduates from North Carolina’s in the US within this financial year. engineering services to the network of colleges, universities and Aerospace and Defence market. community colleges, as well as local Abidali Z. Neemuchwala, CEO and professionals who will benefit from Executive Director, Wipro, said: “We “This acquisition is a step towards up-skilling through Infosys’ world-class will work more closely with start-ups, enhancing our Build and Maintain training curriculum. academia and leading technology offerings. Through this acquisition, companies in the Bay area to help our we are better positioned to As part of its commitment to growing clients achieve their desired digital provide increased value to our 2,000 jobs in the state of North transformation outcomes.” customers by undertaking more Carolina, the company is partnering comprehensive work. We are with the North Carolina Community Wipro said it has invested over $2 confident that this acquisition will College System to create a billion in the US over the last decad. aid us in achieving our vision.” customised program designed to train the workforce of the future.
28 October 2017 INDIA GLOBAL BUSINESS
ANALYSIS Indian PM Narendra Modi with Uzbekistan President Islam Karimov
India taps Central Asia for energy security by India Inc. Staff
Indian Prime Minister Narendra Modi has brought about a paradigm shift in India’s quest for oil, gas, uranium by forging close relations with the five ‘Stans’ – Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and Turkmenistan.
he controversial and much lukewarm engagement with Central region, is crucial to India as a source delayed Turkmenistan- Asia and is the culmination of of raw materials such as oil and gas Afghanistan-Pakistan-India Modi’s proactive outreach to the five as well as uranium and it is also a T(TAPI) gas pipeline is finally getting a “Stans” – Uzbekistan, Kazakhstan, potentially large market for Indian move on – a full 22 years after it was Turkmenistan, Kyrgyzstan and exports. conceived. Tajikistan – which gained momentum following his very successful visit to Kazakhstan, which has 15 per cent of Following the groundbreaking the region in 2015. the uranium reserves, is the world’s ceremony last December, India largest producer of this strategically will host the next meeting of the critical mineral and accounts for more Steering Committee which has been than a third of global supplies and formed for the $7.6-billion, 1,814-km- THE LACK OF DIRECT Turkmenistan has the fifth-largest long pipeline that will transport gas CONNECTIVITY IS THE natural gas reserves in the world. from the Central Asian republic of MAIN REASON FOR THE India has also signed an agreement Turkmenistan to India to feed its ABSENCE OF LARGE power plants and meet its energy with Uzbekistan for the supply of security needs. INDIAN PRIVATE SECTOR 2,000 tonnes of uranium to feed its INVESTMENTS IN THE FIVE nuclear reactors – on the same lines The initiative to hold the meeting in CENTRAL ASIAN “STANS” as the pact with Kazakhstan. the Indian capital was taken by Prime Minister Narendra Modi when he Given the millennia-old ties that bind met the Turkmenistan President in India with the region – Babur, the Ashgkabad last year. Why the 5 Stans are important founder of the fabled Mughal dynasty, hailed from Uzbekistan – New Delhi The revival of the project marks Central Asia and, particularly, the five views Central Asia as part of its a real step-up in India’s hitherto republics that form the core of the extended neighbourhood.
30 October 2017 INDIA GLOBAL BUSINESS ANALYSIS The TAPI handshake
The pipeline project referred to earlier is by far the most serious economic engagement that India has with the region and could set the tone for more investments and closer business relations.
The economic and energy security aspects apart, there is also a strategic intent behind India seeking closer business links with the region. India is keen on procuring gas from Turkmenistan’s Galkynysh gasfields – the world’s fourth largest. It has to ensure that China, which is building its One Belt One Road project through Turkmenistan and is the largest buyer of the country’s gas, does not swoop in and grab the project, which is being financed by the Chinese Development Bank.
North South Corridor
PM Modi with President of the Kyrgyz Republic Almazbek Atambayev In order to access oil, gas, uranium and other minerals from these Central Asian republics and also open up this market for Indian businesses, the Belatedly joining the race “We share deep historical, cultural government is pressing ahead with and civilisational links. Tajikistan is two large connectivity projects. Following the collapse of the nearest to India among all Central Soviet Union in 1991, Uzbekistan, Asian countries. We are separated The most important of these is the Kazakhstan, Turkmenistan, by a narrow corridor. Our linguistic International North South Transport Kyrgyzstan and Tajikistan proclaimed links are the closest in Central Asia... Corridor, the agreement for which independence, setting off what We discussed measures to tap the was reached between Russia, Iran some experts have called The rich potential in trade and commerce and India 17 years ago. The project, Great Game 2.0 – intense jockeying and to encourage joint ventures which is now backed by 13 countries, among Russia, China and the US for and investments,” the Indian Prime envisages opening a sea route from influence in the region and access to Minister had said after his meeting Mumbai to Iran’s Bandar Abbas port its raw materials. with Emomali Rahmon, President of and then on to Bandar-e-Anzali on the Tajikistan. coast of the Caspian Sea. From here, India has been a late entrant to road and rail transport will carry the this game, primarily because of its Public sector in focus material to Central Asia via Russia. traditionally diffident foreign policy stance. Although the previous UPA The lack of direct connectivity is the Most importantly from India’s government did come out with a main reason for the absence of large perspective, the route bypasses Connect Central Asia Policy, the Indian private sector investments in Pakistan and completes the journey attempted outreach petered out the five Central Asian “Stans”. Two from Mumbai to Central Asia in 25-30 partially because of a missing PSUs, ONGC Videsh and Punjab days compared to 45-60 days that it concerted push to see it through and National Bank have a presence in currently takes goods shipped via the partly because the landlocked region Kazakhstan. Suez Canal. lacked direct connectivity with India. Among private companies, the Sun The second route runs through Iran’s It was only after Modi came to Group operates the Yubileinoye gold Chabahar Port from where a road and power in New Delhi in 2014 that the mine in Kazakhstan, while EPC rail corridor will help transport goods Indian foreign office began to take contractors like KEC International shipped from Mumbai to Central Asia. an active interest in the region and and Cosmopolitan Builders have bid Incidentally, Japan has expressed the Indian establishment woke up for, won and completed projects in interest in partnering India and Iran fully to the commercial and strategic Tajikistan. on this project. opportunities in Central Asia. www.indiaincorporated.com October 2017 31 ANALYSIS SCO and the Dragon Dance effectively ruled these countries prior hitherto virtually untapped markets to the demise of the Soviet Union in for Indian goods, win allies in the fight Another important step towards 1991, is trying its utmost to restore against terrorism and counter growing increasing Indian engagement with the influence of the former Soviet Chinese influence in the region, the five Central Asian republics – Union and before that the Czarist Modi said: “We are both located in critical for accessing its raw materials empire, which had conquered these the proximity of the main source for Indian industrial and strategic countries in the middle of the 19th of terrorism. Combating terrorism needs – is India’s membership of the century. and extremism has always been an Shanghai Cooperation Organisation important and productive area of (SCO). The US, which was the last great cooperation. At a time of growing power to enter the region in the threat of terrorism, we have resolved At a time when major powers like aftermath of the Soviet collapse, to intensify our cooperation further.” Russia, China and the US are shares a strategic convergence jockeying for influence and resources with India as neither country wants In Kyrgyzstan, where the two in the five Stans and even Pakistan these five states to come under the countries signed agreements to has thrown its hat into the ring exclusive or even dominant influence cooperate with each other in the primarily to outflank India in this of either China or Russia. fields of information technology and game, membership of the SCO will medicine and explored the possibility act as a force multiplier for New Delhi To take its ties with Uzbekistan of generating power from that in Kazakhstan, Kyrgyzstan, Tajikistan, forward, the Indian government has country’s massive untapped hydro Turkmenistan and Uzbekistan. proposed to extend the Friendship potential, the Prime Minister repeated Railway Bridge to Herat in western the theme that found ready takers India was given observer status at Afghanistan. among his hosts. the SCO in 2005 and though it has always wanted to play a larger role India and Kyrgyzstan, he said, in the region, it was had to remain “shared interest in combating content being a marginal player. CENTRAL ASIA AND, extremism and terrorism that has New Delhi’s hopes rose when PARTICULARLY, THE become a threat without borders… the moratorium on admitting new FIVE REPUBLICS THAT We see an important place for Central members was lifted in 2010 but it is FORM THE CORE OF THE Asia in India’s future. We can reinforce only now, following proactive lobbying each other’s economic progress.” by the NDA government, that India REGION, IS CRUCIAL TO has become a full member. INDIA AS A SOURCE OF The Prime Minister also pushed RAW MATERIALS SUCH AS for early revival of the stalled TAPI This has raised expectations that the OIL AND GAS AS WELL AS gas pipeline in his talks with the Modi government will now be able to URANIUM AND IT IS ALSO Turkmenistan leadership. play a role as a stabilising factor in this volatile region, though it will have A POTENTIALLY LARGE “The most significant initiative in to contend with an aggressive Beijing MARKET FOR INDIAN our relationship is the TAPI gas that will do everything in its power EXPORTS. pipeline. This could transform regional to ensure that its dominance is not economic cooperation and bring challenged. prosperity along the route... We But strategic affairs experts say underlined the need to implement the China is clearly ahead of every other that India’s energy security needs project quickly,” Modi said. country in this regard. It is already the in Central Asia will be best served largest trading partner of four of the by continuing the present warm This project is now underway and is five countries in the region, its One relationship with Moscow, even as it expected to be completed in 2020. Belt One Road promises to connect allies with the US, and maintaining these countries with itself and the the friendly ties with the five republics. “Kazakhstan is our biggest economic world and it is spending billions partner in the region. We will work of dollars on mining and industrial Modi’s visit changes the narrative together to take economic ties to a projects. It is helped by the fact that new level,” the Indian Prime Minister it shares a border with Kazakhstan, India’s sporadic and anaemic ties said after his talks with that country’s Kyrgyzstan and Tajikistan. with the five Stans of Central Asia President, Nursultan Nazarbayev. underwent a paradigm shift following Beijing has also provided $10 billion Prime Minister Modi’s successful visit The two countries also signed in aid and grants to this region and to these countries two years ago. He agreements on boosting cooperation its trade with the five countries is became the first Indian Prime Minister and business ties in sectors such as more than $50 billion (the comparable to visit all five states on a single trip. defence and railways, besides, of figure for India is $2 billion). course, the pact on uranium supply. Looking to seal agreements to ensure Not to be left behind, Russia, which India’s energy security, open up these “We are pleased to have a much
32 October 2017 INDIA GLOBAL BUSINESS ANALYSIS
ENERGY SECURITY, DEFENCE TIES, TRADE AND GEO-POLITICS WILL DICTATE THE FUTURE OF INDIA’S RELATIONSHIP WITH THE FIVE STANS OF CENTRAL ASIA. larger second contract for purchase Minister and Foreign Minister of growth. It will also give that country a of uranium with Kazakhstan Turkmenistan Rashid Merodov after a stake in India’s future. More deals for and expanding our civil nuclear recent meeting with Indian Petroleum the exploitation and supply of oil and cooperation,” Modi said. Minister Dharmendra Pradhan. gas are likely with this country and its neighbours. The Prime Minister and his team also The 56-inch pipeline has a capacity signed agreements on combating to carry 3.2 billion cubic feet per day The agreements for the supply of terrorism and increasing economic (bcfd) of gas from Turkmenistan to uranium will, likewise, boost both relations with Uzbekistan and India via Afghanistan and Pakistan. India’s N-security and provide the two Tajikistan. Pakistan and India will each get 1.325 Central Asian republics with a steady bcfd gas while Afghanistan will get 0.5 and responsible customer for this very Gas to fuel ties bcfd gas. rare and highly restricted raw material.
The gas pipeline remains the most Future looks bright And with India under Modi finally visible and most expensive project waking up to claim the regional involving India and Central Asia. Energy security, defence ties, trade geo-strategic legacy of the British “I strongly believe in this project, and and geo-politics will dictate the future Raj that post-Independence Indian this is the position of Turkmenistan. It of India’s relationship with the five governments had frittered away, the is not just a commercial project, but Stans of Central Asia. The TAPI future looks bright for further and one which will be a good foundation pipeline will play a major role in this deeper economic and geo-political for providing peace and security by tying up a part of Turkmenistan’s ties between New Delhi and the five in the region,” said Deputy Prime gas revenues to India’s continued republics of Central Asia.
ATTRACTIVENESS TO INDIA Attractiveness to India:
Tajikistan Kazakhstan Turkmenistan
• Geo-strategic location; shares borders with • Immense hydrocarbon reserves • Enormous gas reserves China, Afghanistan, Uzbekistan and Kyrgyzstan and growing role in the region • Transit potential and and proximity to Pakistan-occupied Kashmir (PoK). • Cooperation in hydrocarbons, geo-strategic location as • Rich in hydroelectric power civil nuclear energy, space, a gateway to Central • The largest natural water resources in the region information technology and cyber Asia through Iran. • Rich mineral deposits security, pharmaceuticals, health • Tajik military officers receive training at Indian care, agriculture, and cultural defence institutions exchange programmes.
Uzbekistan Kyrgyzstan
• Supports India’s candidature for full membership in the • Training for Kyrgyz armed forces in UN SCO and UNSC peacekeeping operations • Cooperate in coal gasification, oil and gas, banking, • English language skills pharmaceuticals, textiles, science and technology, • MoUs for cooperation in research and development standardisation, small and medium enterprises and tourism. in high altitude base agriculture, plantation, animal • More than 60 Indian companies operating in the country husbandry, poultry, education, sports, culture, IT, • Economic reconstruction projects and cooperation on health, S&T and food processing counter-terrorism
www.indiaincorporated.com October 2017 33 WHY THE ‘5 STANS’ ARE IMPORTANT FOR INDIA Recent announcements/tie-ups: Security cooperation: The Central Asian nations of Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and In June 2016, Prime Minister Narendra Modi met Uzbekistan President Islam Karimov; the two Turkmenistan offer New Delhi an entry into the Great Game being played by the US, leaders called for more security cooperation to further strengthen bilateral relations. China, Russia and Pakistan. India will organise a 'Festival of India' and an 'Indian Trade Exhibition' in Uzbekistan to mark 25 years of Uzbekistan's independence and 25th anniversary of diplomatic relations with India.
Uzbekistan (Values in US$ Million) In Dec 2016, India and Kyrgyzstan signed six MoUs/Agreements following talks between Bilateral trade Prime Minister Narendra Modi and Kyrgyz President Almazbek Sharshenovich Atambayev Uzbekistan Kyrgyzstan MoU on cooperation in the eld of Tourism
40 37.76 MoU in the eld of cooperation in youth exchange 34.54 180 170.44 35 30.55 30.44 160 30 MoU on cooperation in the eld of Youth development 140 25.11 25 120 108.97 114.07 94.64 MoU on cooperation between the Foreign Service Institute and the Diplomatic Academy of 100 20 Kyrgyzstan the Kyrgyz Republic 80 15 55.86 10.08 60 46.54 45.26 10 40 30.28 31.5 20 16.5 5 1.79 1.48 0.77 0.64 0 0 In Jan 2017, India and Kazakhstan agreed to amend the two-decade old bilateral tax treaty to 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 share information with each other’s law enforcement agencies. (Apr-June) (Apr-June) Exports Imports Exports Imports List of Agreements signed during the Visit of Prime Minister to Kazakhstan (7-8 July, 2015) Agreement on Transfer of Sentenced Persons Agreement on Defence and Military – Technical Cooperation between Republic of India and Republic of Kazakhstan. Consolidated bilateral Kazakhstan Kazakhstan Memorandum of Understanding between Ministry of Youth Affairs and Sports of Republic of trade of the region India and Ministry of Culture and Sports of Republic of Kazakhstan on Cooperation on Physical Cultural and Sports. 800 900 701.67 775.74 700 656.33 800 703.43 700 600 612.45 604.57 521.29 600 538.01 500 500 456.93 Following delegation level talks between Prime Minister Narendra Modi and visiting
400 352.93 400 338.33 362.45 President of Tajikistan Emomali Rahmon in New Delhi, India and Tajikistan have signed 300 284.06 300 250.68 261.51 four agreements. (Dec 2016) 222.04 200 200 91.73 120.88 151.91 100 Memorandum of Understanding (MoU) on Broadcasting in Exchange of Audio Visual Programs. 100 0 31.52 2017-18 2016-17 2015-16 2014-15 2013-14 0 MoU for cooperation in the exchange of nancial intelligence related to money laundering, (Apr-June) 2016-17 2015-16 2014-15 2013-14 related crimes and nancing of terrorism. Exports Imports Tajikistan Exports Imports Source: Department of Industrial Policy & Promo�on
List of Agreements/ MoUs signed during the visit of Prime Minister to Turkmenistan: (July 2015)
Memorandum of Understanding on supply of Chemical Products between the Indian Public Sector Undertaking ‘Rashtriya Chemicals and Fertilizers Limited’ and the Turkmen State concern Tajikistan Turkmenistan 100 ‘Turkmenhimiya.’ 60 91.98 53.71 54.27 90 Memorandum of Understanding between the Foreign Service Institute of the Ministry of External 50 80 73.62 70 68.53 Affairs of the Republic of India and the Institute of International Relations of the Ministry of Foreign 40 60 57.6 Affairs of Turkmenistan. 46.97 30 50 21.82 Agreement between the Ministry of Youth Affairs and sports of the Republic Of India and the State 22.26 40 20.44 20 30 Committee for sport of Turkmenistan on Cooperation in the eld Of sports. 12.98 21.32 9.98 20 12.51 13.05 14.1 Turkmenistan 10 7.34 Programme of Cooperation in Science and Technology between the Government of the Republic 4.39 10 0.86 1.99 of India and the Government of Turkmenistan for the Period of 2015-2017. 0 0 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 Memorandum of Understanding between the Government of the Republic of India and the (Apr- June) (Apr-June) Government of Turkmenistan on Cooperation in Yoga and Traditional Medicine. Exports Imports Exports Imports WHY THE ‘5 STANS’ ARE IMPORTANT FOR INDIA Recent announcements/tie-ups: Security cooperation: The Central Asian nations of Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and In June 2016, Prime Minister Narendra Modi met Uzbekistan President Islam Karimov; the two Turkmenistan offer New Delhi an entry into the Great Game being played by the US, leaders called for more security cooperation to further strengthen bilateral relations. China, Russia and Pakistan. India will organise a 'Festival of India' and an 'Indian Trade Exhibition' in Uzbekistan to mark 25 years of Uzbekistan's independence and 25th anniversary of diplomatic relations with India.
Uzbekistan (Values in US$ Million) In Dec 2016, India and Kyrgyzstan signed six MoUs/Agreements following talks between Bilateral trade Prime Minister Narendra Modi and Kyrgyz President Almazbek Sharshenovich Atambayev Uzbekistan Kyrgyzstan MoU on cooperation in the eld of Tourism
40 37.76 MoU in the eld of cooperation in youth exchange 34.54 180 170.44 35 30.55 30.44 160 30 MoU on cooperation in the eld of Youth development 140 25.11 25 120 108.97 114.07 94.64 MoU on cooperation between the Foreign Service Institute and the Diplomatic Academy of 100 20 Kyrgyzstan the Kyrgyz Republic 80 15 55.86 10.08 60 46.54 45.26 10 40 30.28 31.5 20 16.5 5 1.79 1.48 0.77 0.64 0 0 In Jan 2017, India and Kazakhstan agreed to amend the two-decade old bilateral tax treaty to 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 share information with each other’s law enforcement agencies. (Apr-June) (Apr-June) Exports Imports Exports Imports List of Agreements signed during the Visit of Prime Minister to Kazakhstan (7-8 July, 2015) Agreement on Transfer of Sentenced Persons Agreement on Defence and Military – Technical Cooperation between Republic of India and Republic of Kazakhstan. Consolidated bilateral Kazakhstan Kazakhstan Memorandum of Understanding between Ministry of Youth Affairs and Sports of Republic of trade of the region India and Ministry of Culture and Sports of Republic of Kazakhstan on Cooperation on Physical Cultural and Sports. 800 900 701.67 775.74 700 656.33 800 703.43 700 600 612.45 604.57 521.29 600 538.01 500 500 456.93 Following delegation level talks between Prime Minister Narendra Modi and visiting
400 352.93 400 338.33 362.45 President of Tajikistan Emomali Rahmon in New Delhi, India and Tajikistan have signed 300 284.06 300 250.68 261.51 four agreements. (Dec 2016) 222.04 200 200 91.73 120.88 151.91 100 Memorandum of Understanding (MoU) on Broadcasting in Exchange of Audio Visual Programs. 100 0 31.52 2017-18 2016-17 2015-16 2014-15 2013-14 0 MoU for cooperation in the exchange of nancial intelligence related to money laundering, (Apr-June) 2016-17 2015-16 2014-15 2013-14 related crimes and nancing of terrorism. Exports Imports Tajikistan Exports Imports Source: Department of Industrial Policy & Promo�on
List of Agreements/ MoUs signed during the visit of Prime Minister to Turkmenistan: (July 2015)
Memorandum of Understanding on supply of Chemical Products between the Indian Public Sector Undertaking ‘Rashtriya Chemicals and Fertilizers Limited’ and the Turkmen State concern Tajikistan Turkmenistan 100 ‘Turkmenhimiya.’ 60 91.98 53.71 54.27 90 Memorandum of Understanding between the Foreign Service Institute of the Ministry of External 50 80 73.62 70 68.53 Affairs of the Republic of India and the Institute of International Relations of the Ministry of Foreign 40 60 57.6 Affairs of Turkmenistan. 46.97 30 50 21.82 Agreement between the Ministry of Youth Affairs and sports of the Republic Of India and the State 22.26 40 20.44 20 30 Committee for sport of Turkmenistan on Cooperation in the eld Of sports. 12.98 21.32 9.98 20 12.51 13.05 14.1 Turkmenistan 10 7.34 Programme of Cooperation in Science and Technology between the Government of the Republic 4.39 10 0.86 1.99 of India and the Government of Turkmenistan for the Period of 2015-2017. 0 0 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 Memorandum of Understanding between the Government of the Republic of India and the (Apr- June) (Apr-June) Government of Turkmenistan on Cooperation in Yoga and Traditional Medicine. Exports Imports Exports Imports P lished y
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